Algorand price today is hovering near $0.234 after testing the $0.23 support level. The token has spent most of August inside a descending pennant, narrowing its range between $0.239 and $0.29. Traders are watching closely, as the pattern approaches its intersection point in mid-September, when volatility is expected to surge.
Fundamentals remain supportive. Algorand’s new partnership with XBTO has strengthened liquidity and deepened order book stability, a key factor for institutional investors. Still, spot netflows remain negative, highlighting cautious sentiment among retail and short-term traders.
The immediate question is whether ALGO can defend its base and prepare for a breakout above $0.25, or if selling pressure will push it toward deeper support near $0.20.
Algorand Price Action Struggles Within Descending Pennant
On the daily chart, Algorand price action is contained inside a clear descending pennant, with resistance near $0.27 and support close to $0.23. The token is currently trading below its 20-day EMA at $0.252, signaling near-term weakness, while the 50-day EMA at $0.248 and the 100-day EMA at $0.238 are providing short-term demand.
The 200-day EMA at $0.234 sits exactly at the current price, underscoring the importance of this level as both a technical and psychological pivot. RSI stands around 43, reflecting subdued momentum and leaving room for either a sharp rebound or further downside.
Analyst AJ on X identified the $0.239 and $0.29 levels as significant warning signs for the Algo community, indicating that “the walls are closing in on the pennant” and a probable breakout by September 15. He compared the setup to VeChain’s recent move, calling sub-$0.29 buys “a steal” for spot traders.
XBTO Partnership Brings Institutional Liquidity
Algorand’s recent partnership with XBTO adds a strong fundamental backdrop. XBTO will serve as a strategic market maker, enhancing ALGO’s liquidity across major exchanges. By ensuring deeper order books, this collaboration aims to reduce Algorand price volatility, making it more suitable for institutional flows.
This development aligns with broader institutional trends. Surveys show 83% of institutions plan to increase crypto allocations in 2025, with liquidity and compliance listed as top requirements. Algorand’s Pure Proof-of-Stake model, capable of handling over 10,000 transactions per second, positions it as a blockchain designed for scalable, low-cost institutional infrastructure.
In addition, XBTO is leveraging Algorand for USDC stablecoin transfers, optimizing custody and treasury operations. This functionality could boost cross-chain adoption and provide additional tailwinds for Algorand’s long-term narrative.
Bulls Eye $0.29 Breakout, Bears Warn of $0.20 Breakdown
Bulls argue that as long as Algorand price holds the $0.23 base, momentum can reset for an upside push. A breakout above $0.25 would open the door for retests of $0.27 and $0.29, the upper boundary of the pennant. Beyond $0.29, the next resistance zone sits near $0.34, where July’s rally peaked.
Bears caution that persistent negative netflows suggest lingering sell pressure. On August 30, ALGO recorded $358K in outflows, a modest but clear continuation of the bearish August trend. If $0.23 fails, the token could slide toward $0.21 and $0.19, where stronger historical demand sits. RSI weakness and rejection from moving averages reinforce the possibility of further downside.
This split outlook reflects the broader tension in the market: institutional adoption is building, but near-term liquidity remains fragile.
Algorand Short-Term Outlook: Volatility Into September
Heading into August 31, Algorand price prediction hinges on the pennant boundaries. A decisive move above $0.25 could spark momentum toward $0.29 in the coming sessions. Sustained closes above $0.29 would likely confirm a breakout, shifting sentiment toward the $0.34–$0.36 range.
Conversely, failure to hold $0.23 could invite quick retests of $0.21, with risk of further slippage if broader market weakness continues. With the pennant narrowing and the breakout window approaching, traders should expect a surge in Algorand price volatility as September begins.
Algorand Forecast Table
| Indicator | Signal | Levels/Notes |
| Price Today | $0.234 | Holding near $0.23 support |
| Support | $0.23 / $0.21 | EMA and historical demand |
| Resistance | $0.25 / $0.29 | Pennant top and breakout trigger |
| RSI | 43 | Neutral-weak, room for reversal |
| MACD | Bearish bias | Momentum tilted downward |
| Pattern | Descending pennant | Breakout window mid-September |
| Flows | –$358K outflow | Modest sell pressure persists |
| Supertrend | Bearish | Needs close above $0.25 to flip |
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